Redbox Gives In To Warner Bros., Won't Release New DVDs For 28 Days

Warner Bros. (TWX) and Redbox (CSTR) announced a new multi-year deal that will delay new releases becoming available in the DVD rental kiosks for 28 days.

As with Warner Bros.'s 28-day delay deal with Netflix, the idea is to hold off new releases to sell more DVDs.

The agreement is essentially a bunk deal for Redbox, which is much more dependent on new releases than Netflix. It is also inconvenient for users, who will have to wait four weeks to get the movie they want to see from the kiosk.

The agreement settles a lawsuit that redbox filed against Warner Home Video in August 2009, after WB originally announced that they were holding the DVDs for 28 days.

According to a statement from the companies, Warner Home Video and redbox will be implementing "delayed availability" during the month of March and will reach a four-week window by March 23 with the release of The Blind Side. The new agreement will run through January 31, 2012. Redbox has also agreed to destroy Warner Home Video content following its lifespan in kiosks.

"The 28-day window for redbox balances the economics of our relationship while continuing to offer great value to their customers," said Ron Sanders, president, Warner Home Video, said in a statement. "This accord establishes a mutually beneficial relationship that will foster an ongoing and productive partnership."